The Future Is Green
and Goes Beyond
the Carbon Market.
stockcapital.com.br
We publicly commit to sustainability by joining the UN
Global Compact, incorporating advanced social and
environmental responsibility practices into our operations
and aligning our strategies with the UN's Sustainable
Development Goals (SDGs).
Our goal is to create
a positive and lasting impact on both society and the
environment. This commitment reflects our determination to
adopt essential values that guide our actions, which are
based on the ten principles of the Compact, as outlined
below:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: Make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labour;
Principle 5: The effective abolition of child labour; and
Principle 6: The elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Uncourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
The Sustainable
Development Goals
We reaffirm our commitment to the Sustainable Development Goals (SDGs) and to sustainability practices aligned with ESG principles, actively contributing to global efforts to foster a more inclusive, equitable and sustainable future. This commitment is reflected in the following goals:
Goal 5:
Gender Equality
Achieve gender equality and empower all women and girls.
Goal 6:
Clean water and sanitation
Ensure availability and sustainable management of water and sanitation for all.
Goal 8:
Decent work and economic
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Goal 13:
Climate action
Take urgent action to combat climate change and its impacts.
Goal 17:
Partnerships for the goals
Strengthen the means of implementation and revitalize the global partnership for sustainable development.
Commitments to Stakeholders
As signatories of the International Capital Market
Association (ICMA), we are committed to adhering to the best
international practices of governance, transparency, and
responsibility in the capital markets.
We align with the ICMA guidelines for the issuance of
financial instruments that integrate value with
environmental, social, and governance (ESG) criteria,
reinforcing our commitment to an innovative and sustainable
financial market.
Our framework is based on essential principles,
including:
1. Sustainable, Social, and Green Bond Guidelines (2021) –
Regulated by ICMA, these guidelines establish best practices
for the issuance of instruments in the capital markets.
2. Green and Social Loan Principles (2021) – Published by
the Loan Market Association (LMA), these guidelines
establish standards for bilateral and syndicated loans with
financial institutions and multilateral agencies.
These principles structure our framework, ensuring
compliance with the highest international standards of
sustainability and social responsibility. As voluntary
guidelines, they promote transparency and integrity in the
raising of funds through ESG Financial Instruments
(ESG-FIs), highlighting best practices within the sector.
We have developed our framework with a focus on clear and
transparent communication with our stakeholders, ensuring
that all stages of our projects and resource management meet
the expectations and interests of our partners and society.
Our practices are based on the four key components of the ICMA Principles:
• Development of forest projects (REDD+) and carbon
removal projects, projects for the recovery of degraded
areas.
• Preservation and restoration of natural landscapes.
• Development of environmental education programs.
• Development of programs, educational assistance, and
professional training for youth in at-risk communities.
• Due deligence and socio-environmental diagnosis.
• Technical and environmental feasbility analysis.
• Legal and regulatory compliance.
• Socio-environmental impact assessment.
The funds raised through the Sustainable Bonds issued by
Stock Capital will be managed by the company’s Corporate
Governance to finance new or existing projects.
Stock Capital will allocate the proceeds from the
Sustainable Bonds to portfolios of eligible green and
social assets and projects, selected in accordance with
the eligibility criteria outlined in principle 1 (Use of
Proceeds).
Stock Capital will maintain specific control performed
by an area independent from the business area, with
independent reporting to the Executive Committee, for
the determination and supervision of the asset and
project portfolio in relation to the guidelines
described in this Framework and the amount of funds
raised from the issuance of the Sustainable Bonds.
Monitoring will be conducted periodically through
internal reports, using Stock Capital’s information
systems to track and report on eligible projects or
assets, as defined in the “Use of Proceeds” chapter.
If, for any reason, the value of the green and social
asset portfolio is less than the total value of the
Sustainable Bond issuance, Stock Capital will
demonstrate that:
1. It has maintained the unallocated balance in its own
cash or in high-liquidity and lowrisk Federal Government
Bonds;
2. Stock Capital reiterates that the funds obtained from
any issuance of Sustainable Bonds that fit within the
prerogatives of this Framework will be used exclusively
to finance assets and projects that meet the eligibility
criteria described above.
As part of our transparency practice and commitment to
best governance practices, it is our intention to
annually disclose a consolidated report on our website.
This report will contain detailed information about all
funds raised through Sustainable Bonds as defined in our
Environmental, Social, and Governance (ESG)
Sustainability Framework. Our intention is to maintain
this annual disclosure until all net proceeds from the
Sustainable Bond are fully directed to finance eligible
investments.
Additionally, we reserve the right to publish periodic
updates at the company's discretion. As soon as the net
proceeds are fully allocated to eligible projects and
thereafter it meets the maturity of the Sustainable
Bond, Stock Capital will provide investors annually on
its website or in the annual sustainability report with
the following information:
1. The amounts attributed to the Eligible Categories (as
described above);
2. The percentage of net proceeds allocated to Eligible
Investments;
3. The proportion of financed vs. refinanced eligible
investments.
The reports will be subject to an independent review by
an independent verifier or an external consultant
specializing in ESG research and analysis, responsible
for ensuring their integrity and accuracy. Furthermore,
whenever possible, we will be able to disclose
information related to the expected environmental or
social impact projections of the Eligible Investments.
